Key Takeaways
- • Neil Mackay argues in The Herald that private equity buyouts are hollowing out the UK high street, using the Goodfellas "bust-out" as his model for asset-stripping acquired companies.
- • Mackay states that American financiers plan to sell flagship "British brands" including Morrisons (owned by Clayton, Dubilier & Rice), PizzaExpress (majority-owned by Bain Capital and Cyrus Capital Partners), Waterstones (Elliott Investment Management), Poundland (Gordon Brothers) and Third Space.
- • Mackay cites the Financial Times reporting that Sainsbury's has held takeover talks, and notes that BlackRock is among Sainsbury's major shareholders.
- • Mackay cites a 2025 figure of 2,370 PE deals in Britain and claims one in eight British workers is employed by PE-controlled companies; these figures are presented as his own assertions rather than independently verified data.
- • Mackay calls for regulation, including limits on tax breaks for leveraged buyouts, restrictions on redundancies and asset-stripping, and tighter rules in critical sectors such as care.
Summary
In a column for The Herald, Writer-at-Large Neil Mackay argues that private equity is a primary cause of decline on the British high street. He frames the leveraged buyout model through the "bust-out" scene in Martin Scorsese's Goodfellas, describing a process in which acquirers borrow heavily, place the debt on the target company, cut costs and redundancies, and then sell the asset after roughly five years.
Mackay points to a pipeline of expected sell-offs. According to his column, citing a Financial Times report titled "Private equity puts string of high street names up for sale," American financiers plan to offload Morrisons, PizzaExpress, Waterstones, Poundland and the gym chain Third Space. He identifies the owners as Clayton, Dubilier & Rice (Morrisons), Gordon Brothers (Poundland), Elliott Investment Management (Waterstones), and Bain Capital and Cyrus Capital Partners (majority owners of PizzaExpress). The Financial Times also reported that Sainsbury's has held takeover talks, and Mackay notes that its major shareholders include BlackRock. He also cites the recent near $9 billion sale of Boots by Sycamore to a Canadian billionaire family.
Mackay's broader claims include that 2,370 PE deals took place in Britain in 2025, that one in eight British workers is employed by PE-controlled companies, and that PE firms control a large share of childcare, care homes, veterinary practices and petrol stations. He cites Debenhams, which he says was left with £1 billion in debt after being bought over, and the collapses of Toys "R" Us and Claire's. These are his assertions and are not independently verified in the column.
Mackay proposes regulatory responses, including ending tax breaks that subsidise leveraged buyouts, imposing restrictions or moratoriums on redundancies and asset-stripping, and limiting PE ownership in critical areas such as the care sector. The column is an opinion piece, and its arguments reflect the author's perspective.
Mackay points to a pipeline of expected sell-offs. According to his column, citing a Financial Times report titled "Private equity puts string of high street names up for sale," American financiers plan to offload Morrisons, PizzaExpress, Waterstones, Poundland and the gym chain Third Space. He identifies the owners as Clayton, Dubilier & Rice (Morrisons), Gordon Brothers (Poundland), Elliott Investment Management (Waterstones), and Bain Capital and Cyrus Capital Partners (majority owners of PizzaExpress). The Financial Times also reported that Sainsbury's has held takeover talks, and Mackay notes that its major shareholders include BlackRock. He also cites the recent near $9 billion sale of Boots by Sycamore to a Canadian billionaire family.
Mackay's broader claims include that 2,370 PE deals took place in Britain in 2025, that one in eight British workers is employed by PE-controlled companies, and that PE firms control a large share of childcare, care homes, veterinary practices and petrol stations. He cites Debenhams, which he says was left with £1 billion in debt after being bought over, and the collapses of Toys "R" Us and Claire's. These are his assertions and are not independently verified in the column.
Mackay proposes regulatory responses, including ending tax breaks that subsidise leveraged buyouts, imposing restrictions or moratoriums on redundancies and asset-stripping, and limiting PE ownership in critical areas such as the care sector. The column is an opinion piece, and its arguments reflect the author's perspective.
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